KATHMANDU: Om Prakash Pandey, the operator of Janaki Medical College in Dhanusha, has been arrested by the police.

Pandey was apprehended on charges of repeatedly misappropriating bank loans by setting up a fictitious business enterprise.

Pandey, a resident of Ratopul, Kathmandu Metropolitan City-9, was arrested on Wednesday by the Central Investigation Bureau (CIB) from the premises of Janaki Medical College located in Ramdaiya, Kshireshwarnath Municipality-1, Dhanusha.

He is accused of abusing credit facilities by creating a shell company named ‘Institute of Agriculture, Forestry, and Veterinary Service Pvt. Ltd.’ in Bardibas Municipality-6, Mahottari. According to Senior Superintendent of Police (SSP) Shiva Kumar Shrestha, spokesperson for the CIB, Pandey repeatedly secured loans by artificially inflating the value of his collateral without even preparing a Detailed Project Report (DPR) for the company.

According to the police, the loans were acquired from Prabhu Bank. However, the authorities have not yet disclosed the exact amount of the misappropriated funds.

The CIB stated that an investigation has been initiated against Pandey under the Banking Offense and Punishment Act, 2008.